Vietnam's five-year bonds on Monday fell for a seventh day, pushing the yield to a two-month high, on speculation banks' demand will slow as policy makers take steps to spur lending. The dong was steady.

The State Bank of Vietnam will punish lenders that continue to charge interest rates above 15 percent on existing loans from July 15, Lao Dong newspaper reported, citing Nguyen Hoang Minh, deputy head of the central bank's Ho Chi Minh City branch. The State Treasury will offer VND1 trillion ($48 million) of two- year bonds and VND2 trillion of five-year debt at an auction on July 19, according to a statement on the Hanoi Stock Exchange's website.

"Supply is going to be higher and in the last six months of this year, banks will lend out more," said Nguyen Tan Thang, head of fixed-income research at Ho Chi Minh City Securities Corp. "Less money will be available for bond trading and investment."

The yield on benchmark five-year bonds rose three basis points, or 0.03 percentage point, to 10.10 percent, according to a daily fixing rate from banks compiled by Bloomberg. That's the highest level since May 4.

The Treasury sold a total of VND1.15 trillion of two-, three- and five-year securities on July 12.

The dong traded at 20,863 per dollar as of 3:37 p.m. in Hanoi, compared with 20,865 on July 13, according to data compiled by Bloomberg. The State Bank of Vietnam set its reference rate at 20,828, unchanged since Dec. 26, according to its website. The currency is allowed to trade up to 1 percent on either side of the rate.